Local Indian cold rolled coil CRC) prices have inched up following base price hikes by mills amid moderate buying and continued uncertainty over the demand outlook in key user industries.
Sources said that the benchmark 0.9 mm CRC prices are up INR 500/mt ($6/mt) to INR 61,000/mt ($731/mt) ex-Mumbai and up INR 750/mt ($9/mt) to INR 62,250/mt ($746/mt) ex-Chennai in the south.
They said that prices have been gaining in reaction to the increases announced by mills, but the market reaction has been negative as reflected in the sharp drop in average booking volumes both at mills and in trade channels.
At least two sources in trade circles cited market chatter that a few large users from automobile manufacturing have been negotiating deferring lifting stocks from rerollers during the rest of the current month, indicating tight inventory control by industries and caution over carrying surplus raw materials.
“Reports coming in from major industries, like specialized steel packaging materials, automobile and consumer durables, indicated a slowdown in April sales growth. This may be owing to the high base effect. Nonetheless demand for raw material will at best remain stable without upside potential going forward, and CRC bookings will be cautious,” a Mumbai-based distributor said.
“Price can be expected to remain range-bound until the market gets the next driver. The market expects the end of the national elections and the formation of the next government to trigger the next trend,” he added.
$1 = INR 83.50